China Securities Finance Corp. won’t pull out of the nation’s equities for a couple of years, according to the securities regulator.
The agency transferred some shares it bought to Central Huijin Investment Ltd., a unit of the nation’s sovereign wealth fund, said China Securities Regulatory Commission spokesman Deng Ge. The move will help to restore stability to the market, he said at a weekly briefing in Beijing on Friday.
China Securities Finance has become one of the most influential investors in the Chinese stock market, with $483 billion of fire power and the potential to add $322 billion more. Disclosures show the agency has preference for large-cap companies, and a particular affinity for railway shares.
The government will use different methods to maintain stability if fluctuations lead to systemic risks, Deng said at the briefing.
The Shanghai Composite Index rallied 5.9 percent this week, taking its gain from the July 8 low to 13 percent.
source:Bloomberg
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